LitFuse

I’m resyndicating a blog post by Tim Kelly on Barry Brook’s “Brave New Climate” blog about Australia’s renewable energy policy. To quote the gist of Tim’s point:

“From June 9, 2009 when a householder is seduced into signing across Solar Credits associated with their small scale Solar, Wind or Hydro generation schemes, they will continue to reduce their emissions yet for every deemed megawatt hour (MWh) created, they will displace 5 MWh of accredited Renewable Energy already required under Australian Law. They will be causing a net 4 MWh to be continued to be produced from fossil fuel sources and therefore will cause more greenhouse gas emissions and do more harm to the environment than doing nothing.”

This is the sort of outcome only a cross-agency government committee can come up with. There is enormous goodwill in the Australian population to contribute to lowering carbon emissions. The current policy is either cynically taking advantage of that goodwill, or the committee has become so bound up in the complex issues it has to address, that it has invented a camel when it meant to invent a horse.

A different approach would be to replace the GST with a carbon tax. This could be cost neutral to the Australian economy (in terms of net tax collected – there would obviously be significant costs in shifting policies over), would not unfairly disadvantage our exporters (no carbon tax on exports) and would encourage Australians to buy and manufacture low carbon products. Over time, one would expect that the economy would shift to a lower carbon economy – which would mean the price of carbon would have to rise to maintain the taxation base to the government. There is some brief discussion about this idea here and here.

Written by Paul Dalby on 14 June 2009

~ by litfuse on June 14, 2009.

Posted in LitFuse, climate change
Tags: barry brook, carbon tax, carbon trading, gst, renewable energy, tim kelly